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Tuesday, July 7, 2009

Subprime losses and more....

Baseline Scenerio, a newsletter I suggest you subscribe to, linked to an update from S and P on loan losses associated with sub-prime and alt A mortgages and the numbers are not pretty. I would love to go back to look at their estimates from 2 years ago but my gut tells me losses at these levels were unimaginable. We have become so numb to mind-blowing loss numbers that it seems like old news but just sit for a minute and ponder these statistics from calculated risk.

If this is old news the new bad news is still to come around commerical real estate. The size of that market is north of a trillion and some are estimating that property values are going to tumble 50%. I will keep my eye out for some good reading on this topic but keep your seatbelt fastened regarding this financial crisis, it is not over....